The technique of mixing inventory trades with QQQ choices, usually detailed in PDF sources, refers to utilizing the QQQ exchange-traded fund (ETF), which tracks the Nasdaq-100 index, and its corresponding choices contracts alongside particular person inventory positions. As an illustration, an investor would possibly maintain shares of Apple (AAPL) and concurrently buy put choices on the QQQ to hedge towards potential market downturns that would negatively impression their AAPL holdings.
This method gives potential benefits, together with portfolio diversification and threat administration. Using QQQ choices can present a level of safety towards broader market volatility affecting expertise shares, with out requiring the sale of particular person inventory holdings. Traditionally, institutional and complex retail traders have employed such methods to refine risk-adjusted returns and handle general portfolio publicity.
